Property management is an industry that just about anyone can enter – but not everyone should. If it were easy, everyone would be doing it! To be successful in the industry, it takes experience, strategy, and patience. Sometimes, even that isn’t enough.
The to-do list is never-ending. Sometimes, rather than focusing on what should be done, it’s learning what needs to be avoided. This article will dive into five mistakes common property management mistakes made by new landlords.
Not allowing people to have pets can alienate many potential tenants. In Houston, 41% of people own at least one dog! By not allowing pets, you are already turning away nearly half of our potential tenant pool.
Additionally, even if someone doesn’t have a pet, knowing they can’t get one down the road can be a red flag. Discouraging pets can come across as being strict and uptight, especially in today’s culture, where people want more freedom to do what they want and deal with their own consequences.
Of course, there are exceptions to this rule, but as a general recommendation, anytime you alienate potential tenants, you could lose business.
Another big issue that new landlords face is trying to do everything themselves. This may be fine if you can devote all your time and resources to running a rental business. But if you’ve got a full-time job and other responsibilities, trying to add being a property manager to your plate can be unwise and, in some cases, dangerous.
Instead, use a property management firm such as Green Residential. Green Residential is a Houston-based residential property company that serves the Dallas area and provides some of the following services:
By providing all these services, you can feel more confident in the entire process and it will save you lots of time. Yes, the services will cost you, but think to yourself, how much is your time worth, and how much is the ease of mind knowing that everything is being taken care of correctly by reliable property managers?
When you set up your first rental, it can be easy to want to avoid conflict and be easygoing when a potential tenant tries to negotiate. While negotiation is a common tactic, going too far can result in selling yourself short.
One way to avoid this is to set boundaries before talking with potential tenants. Consider certain conditions, such as whether you are willing to cover landscaping. What about taking $50 off a month? Is month-to-month paying fair, or is a lease necessary? Will you charge a pet fee? These are all situations property owners need to consider before speaking with a potential tenant. Otherwise, it could get costly, especially if you’re desperate to get someone into the home.
Just because anyone can become a property owner doesn’t mean everyone has success. One of the biggest mistakes new landlords make is jumping into the business before understanding how it works. Below are just some areas that should be researched before getting into the industry:
Researching and understanding all of these different topics can help prevent potential issues and help you decide whether this is an industry you really want to get involved in. It will also prepare you to answer any tough questions that may come up with potential tenants. The fastest way to lose a potential tenant is not to sound confident in what you are doing.
Like any industry, getting your name out there or getting your rental properties known in the community will take time. Search engines will almost always highlight and promote places that have been on the market multiple times or have the backing of a large company.
Have patience and know that more recognition and opportunity will come with hard work.
Getting into the property management sector shouldn’t be taken lightly. There is a lot of money to be made in the industry if done right, but that’s the key: it has to be done right. With these five tips, you can feel more confident in knowing if you should continue down the path and whether it will be successful.
Again, don’t be afraid to outsource for help. As one of the points mentioned, using a company like Green Residential could be the best decision you ever make regarding property management. Explore your options and decide what will work best for you.
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